Scott Bessent Says Things Are Looking Up For The US Economy: 2026, 2027 Are Going To Be 'Great Years' Thanks To Trump's Tax Reforms

Economic Outlook - Treasury Secretary Scott Bessent expressed confidence in the U.S. economy, highlighting key deflationary trends and tax policy changes that are positively impacting working Americans [1][2] - Bessent anticipates that 2026 and 2027 will be strong years for the economy, attributing this to recent tax reforms enacted by President Trump [2] Tax Reforms and Disposable Income - The recent tax reforms include no taxes on tips, overtime, and Social Security, as well as the deductibility of auto loans for American cars, which are expected to boost real income [2] - Many workers have kept their withholding levels unchanged, leading to substantial tax refunds in the first quarter of next year, which will increase disposable income [3][4] Inflation and Consumer Price Index - Bessent stated that the administration has the affordability crisis, referred to as "Biden inflation," under control, with energy prices decreasing [5] - The Consumer Price Index (CPI) is expected to show a downward trend in the coming months, with the September report delayed but anticipated to impact Federal Reserve interest rate decisions [5][6] - A significant increase in the number of CPI components experiencing price surges was noted, rising from 55% a year ago to 72%, primarily due to Trump's tariffs [6]